3-6 months salary untouched

FatherAbraham

katejo wrote: »

Just curious to know how many people do follow this advice (assuming no debts to pay off other than the mortgage). I hear this recommendation over and over and over again but who takes any notice, particularly at a time when salaries are frozen and interest on savings is so poor.
I currently have just short of 3 months take home pay.

Try cutting your spending. Most people are spending too much.

I've got over a year's worth of gross income saved. Actually, that's far too much, and I'm working on transferring a big slice of it into longer-term assets (both pension-fund and naked).

Warmest regards,
FA

atush

reverse commute is when you give up some of your tax free lump sum for a higher monthly/annual indexed pension for LIFE.

Don't know if the university one lets you reverse commute or has a auto LS you have to take. But you need to find this out, to see if AVCs make sense over S&S isas for you?

atush

FatherAbraham wrote: »

Try cutting your spending. Most people are spending too much.

I've got over a year's worth of gross income saved. Actually, that's far too much, and I'm working on transferring a big slice of it into longer-term assets (both pension-fund and naked).

Warmest regards,
FA

I agree most people (myself included ) spend more than they should. And most don't realise how much they are wasting.

for those who are self employed and have uncertain income streams, one year's worth can be a good idea.

But as per the salary vs expenses thing, 3 months Salary could very well be 6 months Essential spending ( ie basics like mtg, food on your plate, electric etc- you would be expected to cut out anything exp like discretionary/leisure from sky tv to exp phone contracts to any leisure activities).

lippy1923

If I lost my job now, I have enough to cover my half of the bills/ mortgage payments for well over a year in my emergency fund.

3-6 months expenses is a must have. It's a shame lots of people don't take it seriously until the sh*t hits the fan.

somethingcorporate

I have around £20k easily accessible and another £10-15k reasonably accessible but would lose significant tax benefits.

It'll cover 6 months of expenses but is not 6 months savings which is 2-3 times this saved amount.

jimjames

atush wrote: »

I agree most people (myself included ) spend more than they should. And most don't realise how much they are wasting.

It surprised me with a colleague recently who was on the phone to gas company saying they couldn't afford the £25 increase in the monthly DD for their bill.

On the desk next to them was their new iPhone.

If they were unable to afford £25 a month then I'm betting they haven't got 3 months spending as savings so it gave an interesting perspective on priorities.

atush

Very true. My contract is up and I switched to a cheaper plan. My provider is trying to tempt me with an I phone lol.

katejo

FatherAbraham wrote: »

Try cutting your spending. Most people are spending too much.

I've got over a year's worth of gross income saved. Actually, that's far too much, and I'm working on transferring a big slice of it into longer-term assets (both pension-fund and naked).

Warmest regards,
FA

As someone who is a single homeowner and so has a larger share of bills than a couple , I think you are speaking to the wrong person . I always clear my credit card in full and never take out loans other than the mortgage . Ok I could save more if I had to but it would mean no holiday and no treats .

katejo

jimjames wrote: »

It surprised me with a colleague recently who was on the phone to gas company saying they couldn't afford the £25 increase in the monthly DD for their bill.

On the desk next to them was their new iPhone.

If they were unable to afford £25 a month then I'm betting they haven't got 3 months spending as savings so it gave an interesting perspective on priorities.

Perhaps they really mean that they just don't want to spend more on gas . I still have a basic Nokia

hcb42

I have well over a year's salary in my emergency fund. I have taken time off in the past say for three-four months when i have lived off savings. i can comfortably live on about 60% of my normal take home in these circumstances so could stretch to two years at a push.

I still worry I don't have enough !